Friday, October 21, 2011

Lenders are no longer pushing loans to people who can’t afford them.

Yep, not a misprint.

Zero Hedge

A key reason why a preponderance of the population is fascinated with the student loan market is that as USA Today reported in a landmark piece last year, it is now bigger than ever the credit card market. And as the monthly consumer debt update from the Fed reminds us, the primary source of funding is none other than the US government. To many, this market has become the biggest credit bubble in America. Why do we make a big deal out of this? Because as Bloomberg reported last night, we now have prima facie evidence that the student loan market is not only an epic bubble, but it is also the next subprime! To wit: "Vince Sampson, president, Education Finance Council, said during a panel at the IMN ABS East Conference in Miami Monday that lenders are no longer pushing loans to people who can’t afford them." Re-read the last sentence as many times as necessary for it to sink in. Yes: just like before lenders were "pushing loans to people who can't afford them" which became the reason for the subprime bubble which has since spread to prime, but was missing the actual confirmation from authorities of just this action, this time around we have actual confirmation that student loans are being actually peddled to people who can not afford them. And with the government a primary source of lending, we will be lucky if tears is all this ends in.

More bullets from Bloomberg:

  • Vince Sampson, president, Education Finance Council, said during a panel at the IMN ABS East Conference in Miami Monday that lenders are no longer pushing loans to people who can’t afford them.
  • The bubble in the sector is over
  • Noted political dynamic of education funding
  • U.S. is currently 16th in the world in degree attainment
  • He notes the U.S. education secretary and U.S. president have probably looked at that number
  • Nevertheless state universities are struggling because state governments are poorer: Sampson
  • Says a sustained effort is underway at some schools to bring in out-of-state tuition, which typically pay 100% of the cost
  • Barbara Lambotte, a senior credit officer at Moody’s said during the panel that student loan lenders are chasing the same potential borrowers
  • Everybody is going after borrowers with co-signers and high FICOs, also students who may be going to the better schools: Lambotte
  • Gary Santo, a MD at First Marblehead said during the panel that borrowers too are being more conservative in theirchoice of education funding
  • Lambotte said Moody’s outlook on private student loan ABSmarket is negative, but newer loans should perform better

To be sure, when the implications of the $850+ billion student loan bubble blowing up spread through the financial markets, it will make subprime seem like a tame walk in the park.

Of course, nobody will care about it until it is too late. Just like every other time because this time is never different.

Consider: Liberalism is Treason

III Percent Patriots
My bride and I will be heading into DC tomorrow. I have a few business appointments, then we'll be hunting for the Occupy folks. If we can find them (they were elusive earlier in the week when I was in town) I'll bring back pictures and thoughts from the ground.

In the meantime, I'd offer for your consideration: Liberalism is Treason.

I do not condemn liberal thoughts as treason...only liberal action.

Liberalism is, quite simply when put into action, the redistribution of wealth. Liberals advocate extra-constitutional powers for Government, and they demand that Government take the fruits of labor from the productive by force and redistribute those fruits to others.

That is, quite simply, the active undermining of our Constitution, our republican form of Government, our individual Liberty, and simple theft.

How is that not Treason? Treason is the act of attempting to overthrow the republic.

If the forced intrusion into your life, the taking of your property and the redistribution of your property is not a fundamental violation of our Founding Principles, I don't know what is...

Liberalism in action is Treason.

Treason earns Article III Section III.

Please do not parse Treason and Sedition. Sedition leads to Treason. The goal of Sedition is Treason. For the sake of this discussion, they are indistinguishable.

If our Government fails in its duty to exercise Article III Section III, do we, the Citizens, We the People, ultimately have the Right, duty and obligation to act?

After all, ultimately, we are the Government. We send people to govern in our names, we lend them authority to enforce the Constitution. Failing in their charge, we have the Right to revoke their charter and do the work ourselves.

That means we may duct tape a traitor and deliver upon him Justice.

Think about it.


The hardest working man in show business.....

Embedding disabled, so How Do You Stop?

Also, my memories, written when he died.

I saw James Brown three times in concert. Initially in Petersburg, Virginia, 1964 at a cramped, dark, and smoked filled nightclub. It was extraordinary.

I'll save the intervening concert for last and mention the third one which was in Dana Point, California, 1982, where he performed at a somewhat larger nightclub. I saw his midnight show, and although many years had elapsed, he seemed tireless as before. The next morning I took him and his manager to a liquor store in my cab where he stated that his next stop was Georgia, where he would receive a new set of "ivories."

The second time was in Richmond, Virginia, at the Mosque, 1965. This was a once in a lifetime experience. The line snaked for blocks and we all had the requisite pints of Virginia Gentleman in our hip pockets. Everybody was excited, smiling and friendly. The managers would open the doors and allow a certain number of people in and then close the entrances quickly. It became more and more cramped as we drew nearer, and during the last push my date, Anne Ambler, and I were literally lifted off the ground and momentarily carried forward by the crush of bodies. We only saw one other couple that was white there that night. It's a shame that the race hustlers have tried to wedge us apart. We sat in the second level, and though I imagine the term "dancing in the aisles" was coined before this day, it certainly came to full fruition that night. An absolutely amazing performance left no doubt that he was indeed "Mr. Dynamite."

One item I noticed that has been lacking in every article about James Brown since his death concerns the closing of his shows. When the show was scheduled to end, he would feign a desire to keep singing until two men would come out and guide him off stage. Each time, and there were many, he would break away and return to continue. The show would eventually end when the men came forth once more and fitted him with a straight jacket which finally ended the performance to a roaring ovation.

I imagine he is still putting out 101% and being introduced by Bobby Hatfield in "Rock and Roll Heaven" as ".....the hardest working man in show business, the man who sings I'll Go Crazy ... Try Me"... You've Got the Power ... Mr. Dynamite, the amazing Mr. Please Please himself, the star of the show, James Brown and the Famous Flames!"

Brock Townsend

Inside North Korea’s Prisons: Moms kill children to survive

Via Moonbattery

Wow, just wow.

The Right Scoop

CBN once again brings us the news that we don’t see anywhere else. In this case they are interviewing a woman who has escaped from a North Korean political prison, Bukchang, and has written a book to tell of the horrible atrocities being committed there.

She, at age 13, and her entire family was put in Bukchang because her grandfather escaped to South Korea. Since then she’s lost 7 of her family members in Bukchang.

She recalls that some mothers will kill their children just to stave off starvation in the prison since they are given so little to eat. I just can’t imagine that kind of mindset.

As you watch this, just remember what Mark Levin said the other night, that this IS the Marxist dream.


Professor of Philosophy at Emory University Dr. Donald Livingston for many years had his students study State by State the deaths of Southern Negroes caused at the hands of the USA military during the war and as a result of the 12 year USA Military Occupation of the CSA following the war. He now places this figure at 800,000 to 1,200,000 and about 1,000,000 for white civilians.

He was interested in the statements of the U.S. War Departments records often referred to as the "OR"(The U.S. Official Records of the War of the Rebellion) which stated that 80% of the USA war against the CSA was directed against Southern civilians (meaning our women, children and our elderly) in order to demoralize Southern men so that they would quit fighting and resisting the invasion of their States. The USA continued this practice during its wars of the last century.

Many historians had known of this statement for decades, but its actual application had not been measured by serious research in the past. This would not have been in the interest of American Exceptionalism to do so. We knew that the war was an exercise in genocide of Christians and the destruction of the churches and institutions that had for so long preserved western civilization. The word “extermination” of Southerner's, both Negro and Caucasian, found their way into military orders and northern publications. From my years of study I believe this figure to be reasonable and in line with the U.S. Federal Records.

Timothy D. Manning, M.Div
Executive Director
160 Longbridge Drive
Kernersville, North Carolina 27284
Phone: (336) 420-5355

Tea party: Top 10 federal government cuts

While a super committee in Congress is racing to come up with a program to cut at least $1.2 trillion from the national debt, a rival tea party panel is coming up with a plan of its own.

The “Tea Party Debt Commission,” a project of tea party-aligned FreedomWorks, is meeting to discuss ways to balance the federal budget in 10 years — by cutting $9 trillion in government spending — without instituting tax hikes.

Like the super committee, the Tea Party Debt Commission is made up of 12 people, though its members are all activists, not members of Congress. They plan to release their own report the week before the congressional panel’s program is due in November.

In preparation for their final report, the Commission did a crowdsource survey to learn the top 10 favored budget-cutting ideas from activists across the country. Organizers from the project released the survey results Wednesday:

1. Repeal Obamacare
2. Reduce duplicative purchases of Pentagon supplies
3. Eliminate the Department of Education
4. Privatize Fannie Mae and Freddie Mac
5. Reduce discretionary spending to 2008 level
6. Block grant Medicaid
7. End ethanol tax credits
8. Sell needless federal buildings
9. Eliminate the Department of Housing and Urban Development
10. Reduce Medicare teaching subsidies


Headlines The WH Didn’t Want From Their Taxpayer-Funded Bus Tour

The White House surely must have not appreciated many of the headlines coming out from the President’s second taxpayer-funded campaign bus tour of the year. Whether it was reminding taxpayers he was campaigning on their dime, lawmakers from his own party avoiding him like the plague, or getting a fact check for his spin about his Stimulus 2.0 plan, the White House must be wondering if they got any political mileage at all.

LA Times: “Obama Ends Bus Tour With Pitch To Subdued Crowd”: “Closing out his bus tour on a low-key note, President Obama made a pitch for his jobs package at a firehouse, where a subdued crowd needed a bit of prompting to applaud his proposal to boost the economy.” (Peter Nicholas, “Obama Ends Bus Tour With Pitch To Subdued Crowd,” Los Angeles Times, 10/19/2011)

President Obama Gets Fact Checked For His Spin On The Job Creating Potential Of His Stimulus 2.0 Plan: “President Obama exaggerates when he claims “independent economists” say his jobs bill “would create nearly 2 million jobs.” The median estimate in a survey of 34 economists showed 288,000 jobs could be saved or created over two years under the president’s plan.” (Eugene Kiely and Robert Farley, “Obama’s Spin on Jobs Bill,”, 10/20/2011)

CBS News Reminds Taxpayers They’re On The Hook For Obama’s Campaign Bus Tour: “If Mitt Romney, Rick Perry, Herman Cain or any of the other presidential challengers were to embark on a three-day bus trip like the one now underway by President Obama, it would cost their campaigns tens of thousands of dollars. Perhaps more … But not the Obama campaign. The White House declared that Mr. Obama's three-day trip through North Carolina and Virginia are official events and not campaign appearances, even though the two states are known to be political objectives of his re-election bid.” (Mark Knoller, “Obama's bus tour costing taxpayers thousands,” CBS News, 10/18/2011))

Politico’s Glenn Thrush: “Obama Bus Not Magic In Virginia”: “President Barack Obama’s bus trip into the commonwealth on Tuesday drew hundreds of devoted followers — and cold shoulders from some high-profile Virginia Democrats … Obama isn’t the hot ticket he used to be — a fall 2008 end-of-campaign rally in northern Virginia drew more than 80,000 screaming admirers …” (Glenn Thrush, “Obama Bus Not Magic In Virginia,” Politico, 10/18/2011))

Time Magazine Highlights Obama’s Popularity Problem Among Voters Living Along The Bus Route: “The trip’s route has been telling. Repeating his victories in these pivotal Southern battlegrounds will be a challenge for Obama. Recent polls have shown his support sliding in Virginia, a state he won by a seven-point margin four years ago. The President’s popularity problem is particularly acute among the white, blue-collar workers who form of the backbone of rural communities in the Old Dominion and around the country.” (Alex Altman, “Where Obama’s Hurting: In Piedmont and the Polls,” Time Magazine, 10/19/2011)


Florida banker's wife left family to join Wall Street protesters

Via A Trainwreck in Maxwell

A married mother of four from Florida ditched her family to become part of the raggedy mob in Zuccotti Park -- keeping the park clean by day and keeping herself warm at night with the help of a young waiter from Brooklyn.

“I’m not planning on going home,” an unapologetic Stacey Hessler, 38, told The Post yesterday.

“I have no idea what the future holds, but I’m here indefinitely. Forever,” said Hessler, whose home in DeLand sits 911 miles from the tarp she’s been sleeping under.

Hessler -- who ironically is married to a banker -- arrived 12 days ago and planned to stay for a week, but changed her plans after cozying up to some like-minded radicals, including Rami Shamir, 30, a waiter at a French bistro in Cobble Hill, Brooklyn.

She swears she’s not romantically involved with her new friend. (Of course not, just keeping warm......)

Yesterday was a typical day for the pair, who woke up at 8 a.m. on their little patch of paving stone near the communal kitchen and dashed off to Trinity Church to wash up.

Hessler emerged an hour later, her brown hair in dreadlocks, wearing a T-shirt depicting Han Solo and Princess Leia kissing, and bearing the slogan “Make Love Not War.”

She got coffee and a granola bar from the protest kitchen before sorting laundry for two hours.

The unemployed Long Island native compared her decision to abandon her family to Americans serving in the armed forces.

“Military people leave their families all the time, so why should I feel bad?” a defiant Hessler said. “I’m fighting for a better world.” ::)


Miami Herald: WaPost "Hit" on Rubio Manipulates Facts

Via Sipsey Street Irregulars

The conservative WP manipulating facts? I don't believe it........
Manuel Roig-Franzia is a reporter for the Washington Post who once got punched by his 70 year old editor, Henry Allen, for writing “the second worst story [Allen had] seen in Style in 43 years.” That’s right, Roig-Franzia wrote a horrible piece in the Style section. His 70 year old editor did not like it. Roig-Franzia reportedly called his 70 year old editor and Marine a “c**ksucker”, and the Marine punched him.

Manuel Roig-Franzia has a well documented history of being an apologist for the Cuban communist regime and a hater of the Catholic church. He is also now writing a book on Marco Rubio.

We can get a sense of the book by his stunning hit job on Marco Rubio in the Washington Post.. Roig-Franzia claims Rubio has embellished his “compelling version of his family’s history that had special resonance in South Florida.” Again, keep in mind that Roig-Franzia is an apologist for the Cuban communist regime.

Roig-Franzia writes, “a review of documents — including naturalization papers and other official records — reveals that the Florida Republican’s account embellishes the facts. The documents show that Rubio’s parents came to the United States and were admitted for permanent residence more than 21 / 2 years before Castro’s forces overthrew the Cuban government and took power on New Year’s Day 1959.”

Now, there are two problems for Roig-Franzia. First, the communist apologist failed to actually quote Marco Rubio embellishing his story. The Miami Herald really destroys the piece.

WALL STREET INSIDER: The Obama White House Wants Us Gone. All of Us.

Via The Dorkfish Express
Our latest interview with a longtime Wall Street Insider reveals details of a troubling Obama White House stance against Wall Street executives voicing concern over the now daily violence permeating the Occupy Wall Street movement – and a belief the Obama administration may be actively engaged in helping create that conflict.

Ulsterman: This is the first time you contacted me instead of me contacting you to speak – why the change?

WSI: Things have become much more…serious. This occupy thing…it’s getting…I have never considered myself one for conspiracy, but what I am being told is happening with these protests has left me quite stunned and quite concerned. Even more than just a week prior.

Ulsterman: And what is that? What have you heard?

WSI: A number of calls were made. Direct to the White House. People with considerable influence…people who supported the president in 2008. People who don’t wish to see events spiral out of control here.

Ulsterman: Did they speak to the Obama? President Obama?

WSI: I don’t believe so – not directly. I am told the president no longer engages in direct communication with most of us anymore. His advisers have declared war on Wall Street. Open war. That is what much of what you see going on down there represents. And the Obama White House…sadly…they are behind much of it. They and their union associates.

Ulsterman: Who did they speak to? At the White House?

WSI: I don’t know. What I do know is the message that came back to them was…unfavorable. Certainly very inconsiderate to the concerns of these events unfolding into something terribly violent and increasingly dangerous to a lot of people working and living in this city. And it could very well spread across the country. It’s already started in other parts of the world of course – the violence. The instability to the system. The Obama White House wants us gone. All of us. Anyone of us not fully supportive of his policies.

Ulsterman: What do you mean “gone”?

WSI: Just what I stated. Gone. Out of the way. Our ability to make a living eliminated. The system as we know it…the foundational freedoms of the free market…they consider it a burden. A problem. Something that needs to be redefined where government controls every critical component of the system. In essence, they want the end of capitalism. I know that has been said before, and I was among those who would roll their eyes at such an accusation against President Obama. Call me a believer now. What is being told to me…to others whose livelihood had been working within the current system – the situation is growing very dire. Very dangerous. I am not saying I fear for my life necessarily…it’s not that. It’s that I fear for this country’s way of life. I have never felt it to have been in so much danger as I do so right now. And it’s moving quickly – very quickly in a direction I think very few wish to comprehend.


Moonshine tasting with Junior Johnson tomorrow October 22, 2011